Fitzpatrick: “Overall, Eric, our bias has been that even though the down-move came a little bit deeper than expected, it was still a corrective move within the overall broad-based uptrend. And the recent action in the silver market has really started to support that.
Silver did a perfect 76.4% retracement of the entire 2008 to 2011 move. Last week silver had a ‘positive outside week,’ closing at the highs of the move effectively (see chart below). This strongly suggests that silver may push to the topside.
We were also looking at this area on the short-term charts around $20.50 to $20.60 — this is where the 55-week moving average converges — and we’ve managed to take all of this out with speed. This is yet another indication of strength and signals to us that we are in fact getting ready for another topside move in silver.
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